Jernigan Capital Inc., a merchant bank and advisory firm serving the self-storage industry, has committed $9.9 million toward a proposed 74,172-square-foot self-storage facility in Louisville, Ky. If approved, the project would comprise 725 units in two climate-controlled buildings on Bardstown Road, just south of Interstate 264. Construction is expected to begin almost immediately, with completion scheduled for the fourth quarter of 2018, according to a press release.
Memphis, Tenn.-based Storage Development Partners LLC will serve as the project’s developer. This will be the third project on which the two companies have co-invested.
The target site is along a stretch of road with visibility to about 45,000 cars per day. The immediate vicinity “has seen rapid redevelopment in recent years,” the release stated. The property is near retail destinations, such as Costco and Target, and less than two miles from The Highlands residential community and the world headquarters for Yum! Brands Inc.
Since Jan. 1, Jernigan has closed 24 self-storage investments totaling $306.3 million. The lender typically holds a 49.9 percent profit interest in its joint-venture transactions, according to company officials.
Jernigan Capital is a commercial real estate finance company that provides financing to private developers, operators and owners of self-storage facilities. It offers financing for acquisition, ground-up construction, major redevelopment or refinancing. The firm intends to be taxed as a real estate investment trust and is externally managed by JCap Advisors LLC.